How 'Papa Smurf' threatened to 'bring down' Blackstone chief

It reads like an elaborate plot straight out of a summer pot-boiler. An
ageing, sick grandfather, with links to the Smurfs, attempts to exhort $11m
(£7m) from his own son-in-law by threatening to bring down his career, even
promising to stay away from his grandchildren to get extra money.

Papa SmurfPhoto: GAB Archive/Redferns

By James Quinn, US Business Editor

9:54PM BST 13 Aug 2010

But for David Blitzer – head of asset management group Blackstone's business in London – the 'plot' has been very real for the last three years.

That was until septuagenarian Stuart Ross - branded 'Papa Smurf' by the American media for his role in bringing the blue and white gnome like characters to the US – admitted devising a plot designed to destroy Mr Blitzer's professional standing.

Mr Ross, 73, pleaded guilty to attempted grand larceny, after admitting that he demanded the money from the well-known dealmaker in order to end a bizarre series of threats in which he had promised to smear his son-in-law's name.

The strange tale began when Mr Blitzer and wife Alison were contacted by Mr Ross in December 2007, after five years without hearing from him. The former lawyer had a new business venture he wanted his son-in-law to back.

Mr Blitzer wired him $65,000 but said he would not pay any more, triggering months of harassment by Mr Ross.

The harassment included a voice mail in which Mr Ross vowed to "commit open warfare" if follow-up amounts were not paid. He also threatened to send a note to Blackstone chairman Steve Schwarzman, Mr Blitzer's ultimate boss.

He also allegedly told him, based on a separate civil lawsuit filed by Mr Blitzer which is ongoing, his "world is about to implode" and warned: "You will face the consequences of me being on your case every day of your life.

Mr Ross allegedly enlisted the help of 81-year-old lawyer Stuart Jackson, to get him to ask for a 'settlement' of $11m, $5.5m for ending the smear campaign, and a further $5.5m campaign for giving up any rights to see his grandchildren. When asked in a New York court if those allegations were correct, he admitted: "That's true."

Mr Ross, who the court heard is suffering from leukaemia, is due to be sentenced on October 5. Judge Bonnie Wittner said he'll most likely serve 2-3 years of probation as he long as he gets psychiatric and alcohol treatment and has no contact with the Blitzers or with Blackstone.

Mr Jackson, who has pleaded not guilty, is due in court again on Monday. Mr Ross bought the North American rights to the Smurfs after seeing them on television in their native Belgium in 1976, and profited from the 1980's cartoon series made by Hanna-Barbera Productions.